Individual Long Term Care Insurance
Long Term Care insurance provides coverage when you and your dependents are no longer able to perform everyday tasks due to chronic illness, injury, disability or the aging process. Coverage is also offered for those who are suffering from a severe cognitive complaint, such as Alzheimer’s disease.
Long-term care insurance typically covers home care, assisted living, adult daycare, respite care, hospice care, nursing home and Alzheimer’s facilities. Home care coverage usually pays for a visiting or live-in caregiver, companion, housekeeper, therapist or private duty nurse up to seven days a week, 24 hours a day (up to the policy benefit maximum).
Reasons for Purchasing Long Term Care
- Long term care insurance will help cover out-of-pocket expenses which you and your family would otherwise have to pay. The cost of providing these services could well deplete all yours savings.
- Your long term insurance premiums may be eligible for an income tax deduction. The amount of the deduction depends on the age of the covered person. Benefits paid from a long term care contract are generally excluded from income.
- Medicaid does provide some of the benefits of long term care insurance: medically necessary services for people with limited resources who “need nursing home care but can stay at home with special community care services.” However, Medicaid generally does not cover long term care provided in a home setting or for assisted living. People who need long term care often prefer to be cared for at home or in a private room in an assisted living facility.